An old abandoned building on Fitzerald Avenue on the edge of Christchurch, on February 17, 2021, nearly 10 years after it was damaged in a 6.3 magnitude earthquake. Photo: AFP / Marty Melville
The Natural Hazards Commission is warning homeowners they're only covered for partial land damage under the Crown-owned insurer.
A recent survey shows more than half (56 percent) of insured New Zealand homeowners expect full insurance compensation for natural hazard land damage.
The Natural Hazards Commission (NHC) - which used to be called the EQC - said the national scheme provided up to $300,000 for house damage and some limited cover for damage to land.
NHC chief executive Tina Mitchell said the land cover was standalone and could not be topped up with private insurance.
"Land cover is specifically designed as a contribution payment, not full cover," she said.
"The limits of cover available ensures every homeowner across the country gets access to some protection, and helps keep the scheme affordable as it is funded by homeowners," Mitchell said.
She said people needed to understand there were limits to Crown-owned insurer scheme before a disaster occurred.
"When you understand that your landcover is limited, you can take action.
"We recommend learning about the risks to your property and seeking expert advice from builders or engineers about how to protect your land from damage. For example, strengthening retaining walls and considering how waterways might impact your property are good things to check regularly.
"If you do think your house is in a risky zone, you may want to allow for possible recovery costs in your financial planning. The scheme is a good contribution, but it is not designed to cover all costs," Mitchell said.
NHC's suggestions:
- Learn about the risks to the property, and how the land might be affected.
- Check the limits of cover for the house and the land.
- Reduce risk by seeking expert advice from builders or engineers.
- Plan for how to manage after an event.
Aerial images showing the extent of flooding in Tasman 2025. Photo: Tim Cuff / POOL
The commission's chief strategy officer Michala Beacham told Morning Report properties were only covered for land damage within eight metres of the home, or 60 metres of the land needed to access the home.
"It is a horribly stressful time dealing with a natural hazard event, it effects people homes, families and livelihoods, and then having an unexpected cost on top of that is really, you know, not a good time for anyone.
"So that's why we are just trying to help people understand beforehand."
Beacham said settlements for land were based on the cost of repair - within eight metres of the home - or the value of the land damage, but said under legislation NHC paid whatever was less.
"So if your cost of repair is greater than the value of the land then you are going to face a shortfall... A number of people do find themselves with less than they expected or less than they might otherwise need to make a repair," she said.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
